Bulletin: Enel Chile Ratings Unaffected Following Approval To Merge With Enel Green Power Latin America

MEXICO CITY (S&P Global Ratings) Dec. 22, 2017--S&P Global Ratings said today that its rating and outlook on Enel Chile S.A. (BBB+/Stable/--) are unaffected following the news that the company's extraordinary shareholders meeting approved the merger of Enel Chile with Enel Green Power Latin America on Dec. 20, 2017. The merger will bring all of Enel SpA's (Enel; BBB+/Stable/A-2) Chilean operations under one entity. In our view, this transaction will improve Enel Chile's position in the electric sector in Chile. However, it won't merit a change in the group's business risk profile because it increases the company's positioning in the power generation sector, which we consider as riskier than the distribution business. The proposed transaction is contingent on the success

...MEXICO CITY (S&P Global Ratings) Dec. 22, 2017--S&P Global Ratings said today that its rating and outlook on Enel Chile S.A. (###+/Stable/--) are unaffected following the news that the company's extraordinary shareholders meeting approved the merger of Enel Chile with Enel Green Power Latin America on Dec. 20, 2017. The merger will bring all of Enel SpA's (Enel; ###+/Stable/A-2) Chilean operations under one entity. In our view, this transaction will improve Enel Chile's position in the electric sector in Chile. However, it won't merit a change in the group's business risk profile because it increases the company's positioning in the power generation sector, which we consider as riskier than the distribution business. The proposed transaction is contingent on the success of a tender offer for Enel Chile's purchase of the shares in Enel Generacion Chile S.A. (Enel Generacion Chile; ###+/Stable/--) that Enel Chile doesn't already own. The offer is consistent with Enel's efforts to simplify...

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